Surging air cargo rates out of Japan and Bangladesh boost buoyant market
20 / 09 / 2024
Source: Supakitswn/ shutterstock.com
Airfreight rates from Bangladesh and Japan have surged in recent weeks helping to raise prices in an “already buoyant” air cargo market, according to data provider WorldACD.
The latest figures from WorldACD show that overall airfreight rates were up 14% year on year in the week ending September 15, led by a 24% increase from Asia Pacific and 56% from the Middle East and South Asia (MESA).
The increases in the MESA region have been led by Bangladesh, India and Dubai “bolstered by the disruptions to ocean freight supply chains caused by the attacks on shipping in the Red Sea”.
“Although average spot rates from India to Europe have fallen back to around US$3.30 per kilo in recent months from their highs of more than $4 in April, spot rates from Bangladesh to Europe continue to rise, exceeding $5 per kilo for the last three weeks, as political unrest and logistics disruptions continue to affect this key textile export nation,” WorldACD said.
Meanwhile, rates from Bangladesh to the US have grown at even faster rate and in the week ending September 15 reached $7.49 per kilo – more than three times their levels this time last year.
WorldACD added that spot rates from Japan and Southeast Asia have increased “significantly” in recent weeks.
Source: WorldACD
Last week, average spot rates to the US from Thailand ($6.79), Singapore ($6.76), and Malaysia ($6.60), are “at or close to their highest levels this year, and close to double their levels this time last year”.
“And from Japan, where air services have been disrupted in recent weeks by typhoons, spot rates to the US soared above $8 per kilo ($8.33) in week 37, their highest level this year. That’s an increase of around 50% compared with their average levels three months ago, in mid-June,” WorldACD said.
“The increases in tonnages in week 37 are broadly in line with the pattern last year, and most likely represent an early indication of a strengthening in the market in the lead-up to what is expected to be a strong fourth-quarter peak season. Notable differences this year include the ongoing exceptionally strong demand and high rates from MESA origins.”
The data provider added that spot rates from China and Hong Kong have been relatively stable in recent weeks.
